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DLocal is one of the most famous payment players in Latin America. It specializes in cross-border payments for developing countries such as Brazil, Mexico, Colombia and its home country of Uruguay.
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LONDON — Uruguayan payments firm dLocal has been granted a payment institution license in the UK, adding to the company’s growing portfolio of regulatory approvals, fueling its global expansion.
The emerging-markets-focused fintech told CNBC it has acquired an authorized payment institution license from the Financial Conduct Authority, the UK’s financial services regulator. This will allow it to start attracting UK traders for the first time.
DLocal will engage UK traders through its local organization Larstal Limited. The subsidiary, which trades in the UK as AstroPay, has previously been unable to connect customers locally due to restrictions imposed on it by the FCA. DLocal said the restrictions were a result of the UK leaving the EU.
Pedro Arnt, CEO of dLocal, told CNBC that he expects the business to stand out from domestic payment technology rivals such as Worldpay and Checkout.com, given its focus on emerging markets in Latin America, Africa and Asia.
“When we think about our merchant base in the UK, the distinguishing factor is that we only work in the regions where we serve them,” Arnt said in an interview. He added that dLocal is also targeting global merchants with a presence in the UK.
“The U.K. has become a hub for many global companies — even American companies, some Asian companies — for their expansion into emerging markets, primarily Africa and in some cases Latin America,” Arndt told CNBC.
UK expansion plans
Founded in 2016, dLocal is one of the most prominent payment players in Latin America. It specializes in cross-border payments for developing countries such as Brazil, Mexico, Colombia and its home country of Uruguay.
With the payment license in place, dLocal is looking to increase its presence in the UK with plans to increase staff and grow the business.
Arnt said dLocal is already expanding its presence in the UK, and a number of its executives, such as chief operating officer Carlos Menendez and chief revenue officer John O’Brien, are based in London. dLocal currently has over 1,000 employees.
Arnt said the main benefit dLocal’s UK payments license would bring would be recognition as a “licensing partner” that companies in the developed world can trust to process payments in emerging markets with complex regulatory requirements. DLocal now has over 30 licenses and registrations worldwide.
However, dLocal will face stiff competition. The UK already has an established fintech ecosystem with many well-capitalized players in the payments world operating there, including PayPalstrip, AdienCheckout.com, Mollie and Revolut are just a few.
“Not for sale”
DLocal went public on the Nasdaq in 2021, reaching a $9 billion valuation at the time. Since then, there has been a decline in its market capitalization. As of Tuesday, the business was worth $3.4 billion. Still, the stock is up about 40% over the past six months.
last month, This is reported by Reuters dLocal was in the process of exploring a possible sale. When asked by CNBC about buyout speculation, Arnt said he didn’t want to comment on rumors, but clarified that dLocal is not currently for sale.
Overall, Arndt said the public company provides a level of transparency and control that he sees as “commercially positive” for it. Occasionally, he added, “there will be rumors that someone is interested in the asset – but I wouldn’t think it’s too much.”
“Although there will be a fiduciary duty to shareholders to approve takeovers, Arnt said that for now “the company is not for sale.”
